Kissimmee Commission Raising Electric Rates By 2%

August 29, 1985|By Donna O'Neal of The Sentinel Staff

KISSIMMEE — City residents will see a 2 percent increase in their electric bills starting Oct. 1.

Saying extra revenues are needed to cover bond debts and to buy new equipment, city commissioners Tuesday night voted 3 to 2 for the rate increase. It will bring in an additional $600,000 -- part of $38.5 million the utility expects to get from ratepayers in 1986.

The increase means that the homeowner with a $100 monthly bill now will pay $102.

Commissioner Jimmy Wells, who voted for the increase along with Commissioner Bruce Van Meter and Mayor George Gant, said the 2 percent increase could be used to retire electric bonds earlier. That would ward off steeper rate increases in the future that otherwise would be necessary to pay off the outstanding bond debts, Wells said.

Gant said that although he supported the increase, he would have preferred it be implemented in two phases: 1 percent in October and the other 1 percent next April. However, commissioners did not go along with that suggestion.

Commissioners Naomi Winbush and Ken Maher voted against the increase, saying they are not convinced it is needed. Maher noted that, in addition to the rate increase, the utility plans to keep $291,000 in reserve funds when it becomes the Kissimmee Utility Authority on Oct. 1.

Those extra funds previously went into city coffers. ''I cannot see us raising rates 2 percent if they don't need it,'' Maher said.

The utility also this month received a credit of $91,566 from the Florida Gas Transmission Co. for previous overbillings on fuel used to power Kissimmee's electric generators.

Utility Director Jim Welsh said the billings were part of a 5-year-old dispute over gas charges that the Florida Fuels Committee -- of which Kissimmee is a member -- brought before the Federal Energy Regulatory Commission, which oversees gas charges.

Welsh said FERC, in a recent decision, ordered Florida Transmission to credit Kissimmee for the overcharge. The money will go into a floating city fund used for future fuel costs that otherwise would be passed on to ratepayers.

Also on Tuesday, commissioners voted down a 6 percent sewer increase in preference to a 9 percent increase. The latter figure would bring in the same dollars as raising both water and sewer rates by 6 percent, officials said.

Commissioners earlier this month voted down a water rate increase, saying it is not fair to raise water rates that mostly subsidize sewer projects.

The commission also raised water and sewer impact fees by 1.7 percent, a nominal increase, they said.